Open Aug 6

​In Asian Equity Markets indices traded lower Tuesday morning as the U.S.-China trade war intensified. Shares in mainland China slipped in early trade: the Shanghai composite fell 1.63%, while the Shenzhen component decreased 1.97% and the Shenzhen composite declined 2.037%. In Hong Kong, the Hang Seng index fell 2.19%. Japan’s Nikkei 225 declined 1.76% in morning trade, while the Topix index also fell 1.68%. South Korea’s Kospi declined 1.34%. Over in Australia, the S&P/ASX 200 fell 2.3%.


In Currency Markets China’s offshore yuan fell to an all-time low on Tuesday after the Trump administration labelled Beijing a currency manipulator, marking a sharp escalation in the bruising trade war between the world’s two largest economies. The offshore yuan fell to 7.1265 per dollar, an all-time low. The dollar fell 0.3% versus the yen to 105.61. The greenback earlier slipped to 105.51 yen, the lowest since a flash crash in January that roiled currency markets. The euro rose 0.3% versus the dollar to $1.1238, its strongest level since July 19.


In Commodities Markets oil prices edged up on Tuesday, but remained under pressure as the escalating U.S.-China trade war stoked concerns over global economic growth and future demand for crude. Brent crude futures had risen 10 cents, or 0.17%, to $59.91 a barrel after earlier dipping to their lowest since mid-January at $59.07. The international benchmark fell more than 3% on Monday as traders worried the ongoing trade tensions between the world’s two biggest oil buyers would dent appetite for fuel.


In US Equity Markets indices fell on Monday and futures pointed to more losses to come after a fall in China’s yuan currency and U.S. President Donald Trump’s vow to impose additional tariffs on Chinese goods sparked an escalation of the U.S.-China trade war. The S&P 500 lost 2.98%, to 2,844.74 and the Nasdaq Composite fell 3.47%, to 7,726.04. Apple Inc shares fell 5.2% as analysts warned that the newly proposed tariffs may hurt demand for the iPhone, while the Philadelphia semiconductor index .SOX dropped 4.4%.


In Bond Markets U.S. longer-dated Treasury yields on Monday recorded their steepest one-day drop in more than 14 months as investors scooped up low-risk government debt due to a worsening trade spat between China and the United States. In late U.S. trading, yields on 10-year Treasury notes and 30-year bonds fell by nearly 14 and 13 basis points, respectively. This marked their biggest single-day decline since May 29, 2018 stemming from a safe-haven rally fueled by worries about a political crisis in Italy.